How much money will be in a bank account after 4 years if $3 is deposited at an interest rate of 5% compounded annually? (Be sure to only submit a numerical answer.)

Question

anonymous · Answer

do you know the formula for interest?

terenzreignz · Answer

Formula for the accumulated value is $$\Large \color{blue}p(1+\color{red}i)^{\color{green}n}$$
Where $\large \color{blue}p$ is the principal or present value, $\large \color{red}i$ is the rate of interest per year, and $\large \color{green}n$ is the number of years that pass...

anonymous · Answer

I said 3.60 and apparently that's not correct.

anonymous · Answer

I used simple interest formula

anonymous · Answer

This question isn't asking for simple interest, it's looking for compound interest. The formula has already been given above -- you get an answer a bit higher than 3.60.